Financial Hub

DEFINITION of 'Financial Hub'

A city or region that is considered to be a focal point for the financial services industry. Financial hubs are home to major banks and/or stock exchanges as well as other financial services. They often develop in areas due to externalities, as well as supportive government regulation.

BREAKING DOWN 'Financial Hub'

New York's Wall Street is a highly recognizable international financial hub, as it is the location of the New York Stock Exchange and has long been established as a leader in the financial industry. Other cities, such as London and Hong Kong, are also huge financial hubs. A financial hub can improve a company's economy by drawing in more financial transactions and more business.